Please include IRC Citation. Thanks.

36. Losses on the sale of property between related parties are treated the same as losses on the sale of property between unrelated parties. a. True b. False c. IRC Citation: 37. Section 1231 address gains and losses from the sale of property used in a trade or business and such property naturally includes inventory. True b. False IRC Citation: a. C. 38. In a tax year where 1231 gains are less than 1231 losses, the net 1231 loss is treated as a: a. capital loss b. ordinary loss c. deferred loss d. non-deductible loss e. IRC Citation: 39. Once 1231 gains are netted against 1231 losses, if the gains exceed the losses, the net gain is offset by the "lookback" of $ 1231 losses from the prior seven tax years. True b. False IRC Citation: a. C. 40. Upon the disposition of a Section 1245 asset at a gain, the Section 1245 recapture provisions serve to re-characterize or "recapture" some or all of the gain as ordinary income. a. True b. False